Costa Rica's Export Trade Sector

Costa Rica's export produce have been in the news a lot, particularly the agricultural products, which are exported to Europe and parts of North America. Agriculture is actually the major export product of Costa Rica. Although it is quite easy to think that most of these exports are being carried out by large corporations, the Ministerade Agricultura y Ganadería (Ministry of Agriculture and Livestock) recently revealed that a lot of the exports (46%) are being carried out by small and medium scale businesses.

Products such as Cassava, tubers, rambutan, melons and mangos are being offered for export in Costa Rica by small and medium sized enterprises and they seem to be doing very well. A lot of factors could account for this.

First of all, Costa Rica provides a suitable environment for these export produce. The climate is practically perfect, but even more is the economic and political stability of the country. To further encourage export, the government has put in place, certain policies to make it easier for entrepreneurial endeavors to thrive.

Moreover, it is important to note that Costa Rica signed a partnership agreement with Europe not too long ago and the European Union is now in the process of legally validating the agreement. There is also a free trade agreement between Costa Rica and China. Singapore also has an FTA with Costa Rica and markets are being carefully cultivated in countries such as the USA, Canada, Mexico and Chile.

Two specific incentive systems have significantly contributed to the growth of the export trade in Costa Rica. These are the establishment of Free Trade Zones (FTAs) and the availability of special Drawbacks.

The FTAs are made up of special designated areas which are non-residential in nature. These are called 'Free Trade Zone' parks. There are several tax incentives available to companies in the FTA and one of such tax incentives is the exemption of all taxes associated with the export or re-export of products. Furthermore, companies in the FTA do not have to turn in foreign currency which they earn from sales to the Central Bank of Costa Rica, as is the case for non-FTA companies.

The Special Drawback Incentives allow companies to import raw materials duty free, and then to re-export those materials after further processing.

These two incentives have added a huge boost to the Costa Rican export trade and continue to benefit small and medium sized businesses alike.

Jaco Beach is a short drive from San Jose and is conveniently located not too far from a number of Free Trade Zone parks. Because of this, Jaco beach condos have become a favorite for residential purposes. Contact a Jaco beach real estate professional for more information.